An ethical person - like a politician, banker or lawyer - may know right from wrong, but unlike many of them, a moral person lives it. An Americanist first already knows that.
Bankers and their government agents will always act in their own best interests. Any residual benefit flowing down to the citizens by happenstance will just be litter.

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Thursday, October 31, 2013

Health Insurance Losses to Get Worse: 51 Percent to Lose Employer Based Insurance

As millions of Americans in the
individual health insurance market place continue to lose their coverage,
analysts are looking ahead at the fallout we can expect to see when the
employer mandate goes into effect in 2015. We've already seen employers and
companies dropping health coverage altogether and cutting full-time workers to
part time in order to avoid massive health insurance costs but now, Forbes
reveals that was just the beginning.

Mid-range estimate: 51% of employer-sponsored plans will
get canceled

It turns out that in an obscure report buried in a June 2010
edition of the Federal Register, administration officials predicted massive
disruption of the private insurance market.

the administration’s commentary in the Federal Register did
not only refer to the individual market, but also the market for
employer-sponsored health insurance.

Section 1251 of the Affordable Care Act contains what’s called a “grandfather”
provision that, in theory, allows people to keep their existing plans if they
like them. But subsequent regulations from the Obama administration interpreted
that provision so narrowly as to prevent most plans from gaining this
protection.

“The Departments’ mid-range estimate is that 66 percent of small employer plans
and 45 percent of large employer plans will relinquish their grandfather status
by the end of 2013,” wrote the administration on page 34,552 of the Register.
All in all, more than half of employer-sponsored plans will lose their
“grandfather status” and get canceled. According to the Congressional Budget
Office, 156 million Americans—more than half the population—was covered by
employer-sponsored insurance in 2013.

Another 25 million people, according to the CBO, have “nongroup and other”
forms of insurance; that is to say, they participate in the market for
individually-purchased insurance. In this market, the administration projected
that “40 to 67 percent” of individually-purchased plans would lose their
Obamacare-sanctioned “grandfather status” and get canceled, solely due to the
fact that there is a high turnover of participants and insurance arrangements
in this market.

The worst part? The Obama administration knew this was going to happen and
Barack Obama repeatedly promised the opposite anyway. Congressional Democrats
passed the bill and now we're finding out what's in it. In terms of the number
of future uninsured Americans, we're look at more than half of those in the
individual market losing their plans and at least half of those with employer
based insurance losing their insurance, which leaves at the very least half of
the currently insured population uninsured.

As a reminder, before Obamacare was
passed in 2010, the vast majority of Americans were satisfied with the plans
they had. In addition, the majority of the uninsured were satisfied with their
medical care and costs. From Gallup in 2009:

Americans are broadly satisfied with the quality of their
own medical care and healthcare costs, but of the two, satisfaction with costs
lags. Overall, 80% are satisfied with the quality of medical care available to
them, including 39% who are very satisfied. Sixty-one percent are satisfied
with the cost of their medical care, including 20% who are very satisfied.

There is a clear gulf in these perceptions between the health insurance haves
and have-nots. According to a Sept. 11-13 USA Today/Gallup poll, the 85% of
Americans with health insurance coverage are broadly satisfied with the quality
of medical care they receive and with their healthcare costs. At 79%,
satisfaction with costs among Medicare/Medicaid recipients is particularly
high.

The 15% who are uninsured are far less satisfied with the quality of their
medical care (50% are satisfied), and only 27% are satisfied with their
healthcare costs. (Sixty-nine percent are dissatisfied with their costs.)

What we're going to see is a
collapse in the insurance marketplace, which is exactly what President Obama,
Rahm Emanuel, Harry Reid and Kathleen Sebelius want in order to push a
single-payer system. The only hope we have to avoid this scenario is for
Republicans to come up with an alternative system that is ready to go before
this happens. As millions and millions of people start to lose their health
insurance, they'll start to panic over not having coverage, which opens up the
door for the government to step in and solve its own crisis through a
single-payer system. Think people won't want single-payer? They might not in
principle, but when people panic and the government is the only option they
have to cover an emergency, they'll take advantage of it. If this happens,
there's no going back and we'll have single-payer forever.